The Secret to Buying Land on a Budget

If you're like me, you may enjoy browsing popular real estate apps, searching for your "dream home." Viewing these multi-million-dollar estates offers a glimpse into floor plans, finishes, and amenities—something to aspire to. However, we understand this exercise is purely entertainment. After all, the price tags make these properties out of reach. You may have jokingly thought, "Who needs 10 bedrooms and 14 bathrooms? I don’t even need half of those." While it’s preposterous to think you could make an offer on half the square footage of a residential property, requesting to purchase only a portion of a land listing is quite common. In this edition of Rural Rich, I provide my top rules for doing just that.

Rule #1: Don’t Limit Your Budget Parameters

When searching for a house, you typically share your budget with a realtor to narrow down options based on square footage, number of bedrooms, and neighborhoods. Frankly, it would be a waste of time to view a home listed at $1M if your budget is $300k. Land, however, is different. In fact, on more than one occasion, I’ve purchased land listed at more than triple my budget. The reason? The landowners were willing to subdivide their property. By expanding my search to include listings that seemed far beyond my purchasing power, I found desirable opportunities that, at first glance, appeared unattainable.

Rule #2: Tell the Seller What You Want

The advantage of making an offer on land that will be subdivided is that you can tailor your offer to fit your budget and focus on the most desirable features of the property. In my most recent land acquisition, I offered to buy just a portion of a much larger tract. When I presented my offer, I included a map outlining the exact shape and acreage I wanted. My offer focused on what I deemed the most valuable parts of the larger tract—such as road frontage, creeks, ponds, electrical access, and scenic views. Getting exactly what I wanted only cost me a $1,500 survey fee, which I was more than willing to pay once the seller accepted my offer.

Rule #3: Understand Easements and Access

When subdividing a portion from a larger tract, you must understand who—whether it's you, other landowners, leaseholders, or utility companies—has access to the land. For instance, when I purchased 100 acres out of a 400-acre ranch several years ago, I later discovered that a cattle lease was in place for the entire 400 acres. After I fenced in my portion, I had to honor the lease and keep my gates open to allow cattle to graze on my property. It wasn’t a big deal, but it was a surprise. The lesson I learned is to assume that, when purchasing subdivided land, others may legally have access to it. To avoid surprises, study the survey from the larger tract, identify easements, understand any current leases, and ensure your final contract clearly defines access rights to your property.

In Conclusion

I’ve learned that sellers of larger tracts of land are often open to subdividing. Purchasing a portion of a larger land listing can be a strategic and cost-effective way to acquire desirable property. By understanding the key factors outlined in these three rules, you can navigate the process successfully and secure properties that might otherwise seem out of reach.

The information provided in this article is for educational purposes only. It is not intended to be financial or legal advice. Always consult with a licensed financial advisor, real estate professional, or attorney before making any real estate or investment decisions.